SEOUL, South Korea: South Korea's central bank raised its key interest rate for the second time in three months Thursday as it steps up efforts to control inflation that has risen to its highest level in more than two years. The Bank of Korea lifted its benchmark base rate to 3 percent from 2.75 percent at a monthly monetary policy meeting. The rate influences a variety of borrowing costs in South Korea, including those on overnight loans between financial institutions and more broadly on items such as mortgage and credit card debt. The decision, in line with expectations, came after South Korea's consumer price index jumped in February to its highest level since November of 2008 and remained outside the central bank's inflation comfort zone for a second straight month. The BOK and central banks in China, India, Brazil and other countries have been raising interest rates amid higher inflation. Thailand's central bank hiked its key rate Wednesday by a quarter percentage point to 2.5 percent. New Zealand's central bank, however, cut its benchmark rate earlier Thursday to 2.5 percent from 3 percent, citing the negative impact of last month's deadly earthquake in the city of Christchurch on economic confidence in the South Pacific country. The Bank of Korea has raised the base rate four times since July of last year amid strong economic growth and concerns about inflation.
